FDIC Email Exchange on Crypto Activity Oversight
From: XXXXX
Sent: Sunday, July 23, 2023 11:47 AM
To: FDIC San Francisco Regional Office
Subject: RADD Room
a. Include email: Yes
b. Institution Name: XXXXX
c. City: XXXXX
d. State: XXXXX
e. Division: RMS
f. Folder: Correspondence
g. Source: RO
h. Doc Name: Miscellaneous
i. Description: Internal discussion on crypto “In Scope/Out of Scope” memo.
From: XXXXX
Sent: Wednesday, July 19, 2023 3:19 PM
To: XXXXX; XXXXX; Sheeren, Matthew L.
Cc: XXXXX
Subject: RE: XXXXX File Memo and "Out of Scope" Bank Letter
So long story short with WO is they are advising no changes to the letter even with XXXXX going through XXXXX. I am somewhat surprised by that, but we have it in writing regarding how they would like it handled.
The one thing I am not comfortable recommending to our RO management is WO’s recommendation in this email chain that I highlighted in XXXXX. My interpretation of the suggestion is that WO wants the Region to take full responsibility of the decision for this being “out-of-scope”. While the letter sent to the bank is clearly from the region, I think it is very important for our internal memo to note that WO was involved with this decision. So I chatted with XXXXX and we both agreed to take the WO suggestion in XXXXX and soften the language to include both Regional and Washington references.
So next steps XXXXX Matt XXXXX
Review the following documents that I cleaned up from WO:
- (Review in its entirety) Letter: WO Staff Draft XXXXX Out of Scope Lt XXXXX clean
- (I think you are fine just to review the track changes): Internal memo: RI Draft XXXXX Crypto In-Scope Out-of-Scope Memo 6-15-2023 Post Wo Review
From: XXXXX Email: “I guess that the next step would be to see XXXXX Matt, and XXXXX have any edits to the attached documents. Then pass on up to Paul and Dana, and then to Kathy. If Kathy Oks, then back to the WO for their concurrence, and then mail out the letter.”
Call if this is confusing — thanks XXXXX
From: XXXXX
Sent: Monday, July 10, 2023 8:48 AM
To: Rapp, Laura A. XXXXX@FDIC.gov; Sheeren, Matthew L. XXXXX@FDIC.gov
XXXXX
Subject: FW: XXXXX File Memo and "Out of Scope" Bank Letter
Hi All:
Just a "gentle reminder" that this is still an open item for your review.
If OK, we need to send up to Paul, Dana, and Kathy for their review, and then back to the WO before issuing.
The email chain is below that contains comments from Sumaya.
Regards,
XXXXX
From: XXXXX
Sent: Friday, June 23, 2023 11:51 AM
To: Muraywid, Sumaya A. XXXXX@FDIC.gov; XXXXX
Sheeren, Matthew L. XXXXX@FDIC.gov
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
Ogren, Michelle (Shelly) XXXXX@FDIC.gov; XXXXX
Subject: RE: XXXXX XXXXX File Memo and "Out of Scope" Bank Letter
Hi Sumaya and XXXXX Thanks for your review. I have included your suggested language below in the attached memo. The bank letter is also attached.
Hi XXXXX Thanks for your review. I have included your DCP comment in the memo.
I guess that the next step would be to see if XXXXX Matt, and or XXXXX have any edits to the attached documents. Then pass on up to Paul and Dana, and then to Kathy. If Kathy OKs, then back to the WO for their concurrence, and then mail out the letter.
Thanks,
XXXXX
From: Muraywid, Sumaya A. XXXXX@FDIC.gov
Sent: Friday, June 23, 2023 10:02 AM
To: XXXXX
XXXXX; Ogren, Michelle (Shelly) XXXXX@FDIC.gov
Cc: Sheeren, Matthew L. XXXXX@FDIC.gov; XXXXX
XXXXX
Subject: RE: XXXXX, XXXXX, XXXXX File Memo and "Out of Scope" Bank Letter
Hi XXXXX
Thank you for sharing the documents with us.
Attached is our feedback on the letter to the bank, we propose that it be streamlined.
On the memo, our suggestion is to change the Conclusion/Recommendation section of the Memo to explicitly state the region's recommendation. Something like: "The region does not believe the bank's activities fall within the scope of FIL 16-2022 based on the information provided by the bank and reviewed during the ongoing DCP exam. The region will send an out-of-scope letter to the bank notifying it of our determination following the WO's concurrence."
Thank you and please let us know if you have any questions,
Sumaya XXXXX
From: XXXXX
Sent: Tuesday, June 20, 2023 11:43 AM
To: XXXXX
XXXXX
Ogren, Michelle (Shelly) XXXXX@FDIC.gov
Cc: Sheeren, Matthew L. XXXXX@FDIC.gov; XXXXX
XXXXX@FDIC.gov; XXXXX
XXXXX
Subject: RE: XXXXX, XXXXX, XXXXX File Memo and "Out of Scope" Bank Letter
Hi, Richard.
I updated the memo to include SF DCP's input. We concur with your out-of-scope determination on XXXXX and XXXXX.
Thanks,
XXXXX
Consumer Compliance Technology Specialist
25 Jessie Street at Ecker Square
San Francisco, CA 94105
XXXXX
FDIC
From: XXXXX
Sent: Thursday, June 15, 2023 12:05 PM
To: XXXXX; Ogren, Michelle (Shelly)
Cc: Sheeren, Matthew L. XXXXX@FDIC.gov; XXXXX; Muraywid, Sumaya A. XXXXX@FDIC.gov
Subject: FW: XXXXX, XXXXX and XXXXX File Memo and "Out of Scope" Bank Letter
Hi XXXXX and Shelly:
The attached draft file memo and bank letter are available for your review. As noted below, DCP memo input is needed so I have included XXXXX on this email.
Hi XXXXX
Similar to XXXXX, we need DCP to review and provide a comment in the file memo. On the attached draft memo, I highlighted in red your comment regarding XXXXX, please update the comment for XXXXX. A Compliance exam is in process with XXXXX.
Hi Sumaya:
I know that you mentioned that the Region could act without a WO review. However, XXXXX suggested that I cc you.
Thanks,
XXXXX